State and explain the major problems of business in Nepal.

Business in Nepal is held back by several deep-rooted structural and policy problems. The major problems are explained below:

1. Unstable government policy and regulation: policies change with every change of government, hurting the industrial sector and creating uncertainty for investors.
2. Open border and smuggling: the open border with India encourages unlawful trade and smuggling, and Nepalese firms cannot compete with cheap illegal imports.
3. Low quality of products: major exportable goods fall below international standard, weakening their acceptance in markets.
4. Higher cost and low demand: limited purchasing power and cheaper Indian and Chinese goods undercut Nepalese products, lowering demand.
5. Weak and traditional technology: high interest rates, collateral demands, and lack of advanced technology make finance and modernization difficult, especially for small firms.
6. Poor physical infrastructure: poor transport (blockades, strikes, syndicates) and unreliable electricity (load-shedding, low voltage) hamper industrial development.
7. Lack of energy and fuel supplies: firms depend on imported raw materials from India, and export industries like carpets, garments, and Pashmina suffer from supply interruptions and high transit costs.
8. Lack of mutual trust: cooperation between the government and private sector is missing, with the government acting as a controller rather than a facilitator.

In conclusion, unstable policy, weak technology, poor infrastructure, and a lack of trust between the state and private sector together form the major obstacles to business development in Nepal.